September 20, 2021

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Open Banking: Know that credit card data can be shared |  open banking

Open Banking: Know that credit card data can be shared | open banking

Information about credit limit, transactions made and billing is part of the scope of credit card data that will be shared between financial institutions. in Brazil through open banking – . system Banco Central (BC) This allows customer information to be shared between banks, cooperatives, fintech companies, and other organizations in the industry.

Information can only be shared when authorized by customers – they decide what data to share, with organizations, and the deadline for such sharing.

BC has determined that financial institutions need to make the following data related to credit cards available in Open Banking:

  • Limit: Card information, card limit information, total limit, used limit, available limit, limit by credit type.
  • Transactions: Transaction identification, transaction amount, dates, merchant identification.
  • Invoices: Card brand, billing information, fees, and payment methods.

Cards are the most popular form of credit in the country. They usually offer benefits to customers. In general, the best terms are for those with high incomes who keep money in the bank.

Open banking will facilitate comparison between banks and “tug-of-war” by customers, further democratizing the offer of benefits. Better conditions can be provided, for example, to consumers who pay well, even those with low incomes.

Restricted post from September 27

still, Credit card information will be actively shared from September 27 and in a restricted manner. This is because the implementation of this second phase was planned by the BC “in order to ensure the security and stability of the process and to allow the necessary adjustments”.

Until October 24, there will be restrictions on the number of sharing permissions, the type of information that will be shared, and when the sharing will take place. See the table below for details:

The second phase of the Open Banking implementation was implemented intermittently to ensure the security and stability of the process and allow for adjustments as needed – Photo: Economy/G1

Benefits for consumers

The Central Bank points out that open banking, by establishing the exchange of banking information for individuals between financial institutions, should “serve and benefit the customer himself”.

Among the benefits indicated by the institution is the possibility of reducing the prices of products and services. This is because one bank, for example, can share with another bank whether the customer is a good payer and whether or not they use overdrafts.

“We will have products at a lower cost and products that are more tailored to customer needs, at lower prices and inclusion. We also believe that open banking will generate new business models over time and intensify competition”, emphasized the President of the Central Bank, Roberto Campos Neto.

Find out the main points about open banking and data usage:

  • Participation is optional: Customer needs authorization to transfer data. And for every new post, new OK.
  • Approval of data transfer in open banking services It must be done electronically, in clear and accessible language about the purpose, i.e. for what purpose it will be used.
  • You are The data should only go from Company A, which may be your current bank, to Company B, A bank in which the customer wants to open an account, for example.
  • the past Time limit for information usage, which will be a maximum of 12 monthsA new acceptance is necessary to share the data again.
  • as Organizations need to follow the rules Give General Data Protection Regulation (LGPD), but there is also a specific regulation for open banking.

Understand what open banking services are